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We address a basic diffculty with incorporating fairness into standard utilitarian choice theories. Standard utilitarian theories evaluate lotteries according to the (weighted) utility over ?nal outcomes and assume in particular that a lottery is never preferred over getting the most preferred...
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We combine the choice data of proposers and responders in the ultimatum game, their expectations elicited in the form of subjective probability questions, and the choice data of proposers ("dictators") in a dictator game to estimate a structural model of decision making under uncertainty. We use...
Persistent link: https://www.econbiz.de/10003011511
We show how to bound the effect of belief-dependent preferences on choices in sequential two-player games without information about the (higher-order) beliefs of players. The approach can be applied to a class of belief-dependent preferences which includes reciprocity (Dufwenberg and...
Persistent link: https://www.econbiz.de/10014177923
The aim of this paper is to apply recently proposed individual welfare measures in the context of random utility models of labour supply. Contrary to the standard practice of using reference preferences and wages, these measures preserve preference heterogeneity in the normative step of the...
Persistent link: https://www.econbiz.de/10014187330
We use an experimental method to investigate whether systematic relationships exist across distinct aspects of individual preferences: risk aversion in monetary outcomes, altruism in a two-person context, and social preferences in a larger group context. Individual preferences across these three...
Persistent link: https://www.econbiz.de/10014187347
In this paper we study the determinants of people's attitudes toward income inequality and their consequences for redistributive policies. In the light of a recent literature in social choice theory, we argue that an individual's attitudes toward inequality depend upon the extent of autonomy...
Persistent link: https://www.econbiz.de/10014053250
This paper presents a simple conceptual framework intended for describing individuals' subjective evaluations of occupational wage inequality and their demand for redistribution. Most importantly, the framework explicitly allows for the distinction between individuals' perceptions and their...
Persistent link: https://www.econbiz.de/10014203829
We study a two-stage choice problem, where alternatives are allocations between the decision maker (DM) and a passive recipient. The recipient observes choice behavior in stage two, while stage one choice is unobserved. Choosing selfishly in stage two, in the face of a fairer available...
Persistent link: https://www.econbiz.de/10014213898